LS Cable & System said on May 12 that it has won an order worth about 66 billion won ($54 million) to replace underwater cables in the United States.
It is a project to stabilize power supply and demand in Michigan by replacing old submarine cables installed in the 1970s in the central and northern U.S. by 2021. The U.S. is expected to see a steady increase in replacement demand in the future due to its time-worn electrical grid.
In addition, the development of offshore wind farms in the U.S. is driving the growth of the underwater cable market. The U.S. is expected to increase its offshore wind power generation to 86 gigawatts (GW) per year by 2050. It is the amount of electricity that can be used by more than 80 million households.
Myung Noh-hyun, CEO of LS Cable & System, said, "The U.S. submarine cable market is expected to continue to grow due to the replacement of old cables and the development of offshore wind power," and added, "LS Cable will focus its marketing on exploring new markets such as the U.S., Europe and Africa, away from the existing center of Asia."
The company explained that since it first entered the U.S. ultra-high-pressure cable market in 2006, it has steadily built up trust in the market by successfully carrying out its first offshore wind farm linkage project in the U.S. in 2017.
LS Cable & System signed an underwater cable supply contract worth a total of 500 billion won ($410 million) in Taiwan last year. It has recently won hundreds of billions of won worth of projects in Europe and the Middle East, continuing to tap into the global market.